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1. Indonesia's Economy: Between Growth and Stability

Author:
Roland Rajah
Publication Date:
08-2020
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Indonesia has much economic potential but the trade-off between growth and stability continues to bind its growth ambitions. Indonesian economic policy continues to prioritise stability over growth but the adequacy of economic growth has become the bigger issue. President Joko Widodo’s commendable pro-growth efforts have so far only stabilised Indonesia’s trajectory rather than boost it. Doing better will require reforms to be calibrated to make the trade-off between growth and stability less binding while enhancing productivity.
Topic:
Government, International Trade and Finance, Economy, and Economic growth
Political Geography:
Indonesia and Asia-Pacific

2. Counter Terrorist Trends and Analyses (CTTA) – Volume 12 Issue 03: COVID-19 and Terrorism

Author:
Raffaello Pantucci, Abdul Basit, Kyler Ong, Nur Aziemah Azman, V. Arianti, and Muh Taufiqurrohman
Publication Date:
04-2020
Content Type:
Journal Article
Journal:
Counter Terrorist Trends and Analysis
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
The Coronavirus Disease 2019 (COVID-19) pandemic has redefined almost all spheres of modern life. While states around the world are redeploying their financial resources, energies and military capabilities to cope with the challenge of the coronavirus, terrorist groups across the ideological spectrum have positioned themselves to exploit the gaps created by these policy re-adjustments. Terrorist groups are milking people’s fears amid confusion and uncertainty to promote their extremist propagandas. The rearrangement of global imperatives will push counter-terrorism and extremism down the priority list of the international community. Anticipating these policy changes, existing counter-terrorism frameworks and alliances should be revisited to devise cost-effective and innovative strategies to ensure continuity of the fight against terrorist groups. With these considerations in mind, this special issue of the Counter Terrorist Trends and Analyses (CTTA) features four articles that identify and assess important security risks around COVID-19, given its far-reaching social, economic and geopolitical impact. In the first article, Raffaello Pantucci reasons that COVID-19 will have a deep-seated and prolonged impact across government activity, both in terms of the categorisation of risks, as well as the resources available to tackle other issues. Perceptions of risk around terrorist threats may shift, with states grappling with stark economic, social and political challenges. At the same time, security threats continue to evolve, and may even worsen. According to the author, some of the tools developed to deal with the pandemic can potentially be useful in tracking terrorist threats. However, resource constraints will require states, on a global scale, to think far more dynamically about how to adequately buffer much-needed security blankets both within and beyond their borders. In the second article, Abdul Basit outlines the opportunities and potential implications that COVID-19 has created for terrorist groups across the ideological divide. According to the author, terrorist groups have exploited the virus outbreak to spread racial hatred, doomsday and end-of-times narratives. Among jihadist groups, IS has taken a more totalitarian view of the coronavirus pandemic, while Al-Qaeda (AQ) and the Taliban have used it as a PR exercise to gain political legitimacy. Far-right groups in the West have spun it to promote native nationalism, border restoration and anti-immigration policies. Terrorist groups have increased their social media propaganda to radicalise and recruit vulnerable individuals. At the same time, these groups have urged their supporters to carry out lone-wolf attacks and use the coronavirus as a bioweapon. In the post-COVID-19 world, revisiting existing counter-terrorism frameworks to devise more adaptable and cost-effective strategies would be needed to continue the fight against terrorism. In the next article, V. Arianti and Muh Taufiqurrohman observe that the COVID-19 outbreak has had a varied impact on Indonesia’s security landscape. On the one hand, it has emboldened IS-affiliated Indonesian militant groups to step up calls for attacks, with the government seen as weakened amidst a worsening domestic health crisis. On the other, ongoing indoctrination and recruitment activities of militant groups have also faced disruptions. According to the authors, counter-terrorism strategies will need to be reoriented as circumstances evolve, particularly in dealing with the arrest of militants and the subsequent processes of their prosecution and incarceration. Finally, Kyler Ong and Nur Aziemah Azman examine the calls to action by far-right extremists and the Islamic State (IS), which reveals varying degrees of organisational coherence in the respective movements. According to the authors, such variations influence these two groups’ preferred techniques, tactics and procedures adopted in seeking to exploit the health crisis. For its part, IS has a more organised hierarchical structure, even if it has increasingly granted autonomy to its affiliates to plan and execute attacks. In comparison, the absence of a central authority, or command structure in the far-right, can lead to a fragmentation of interests. These factors invariably create uncertainties in how, when and where extremists of both ilk may seek to operationalise an attack.
Topic:
Security, Government, Health, Terrorism, Counter-terrorism, Al Qaeda, Islamic State, and COVID-19
Political Geography:
South Asia, Indonesia, Southeast Asia, and Global Focus

3. Developing Countries Can Help Restore the WTO's Dispute Settlement System

Author:
Ana González and Euijin Jung
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
By refusing to fill vacancies in the World Trade Organization’s (WTO) Appellate Body—the top body that hears appeals and rules on trade disputes—the Trump administration has paralyzed the key component of the dispute settlement system. No nation or group of nations has more at stake in salvaging this system than the world’s big emerging-market economies: Brazil, China, India, Indonesia, Korea, Mexico, and Thailand, among others. These countries have actively and successfully used the dispute settlement system to defend their commercial interests abroad and resolve inevitable trade conflicts. The authors suggest that even though the developing countries did not create the Appellate Body crisis, they may hold a key to unlock it. The Trump administration has also focused its ire on a longstanding WTO practice of giving these economies latitude to seek “special and differential treatment” in trade negotiations because of their developing-country status. The largest developing economies, which have a significant stake in preserving a two-step, rules-based mechanism for resolving trade disputes, could play a role in driving a potential bargain to save the appeals mechanism. They could unite to give up that special status in return for a US commitment to end its boycott of the nomination of Appellate Body members.
Topic:
Development, Government, World Trade Organization, Developing World, and Donald Trump
Political Geography:
China, Indonesia, India, South Korea, Brazil, North America, Mexico, Thailand, and United States of America

4. Tangled Web: The Role of Oil, Gas and Mining in Funding Regional Governments in Indonesia

Author:
David Manley, Rani Febrianti, and Hari Subhash
Publication Date:
03-2020
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Indonesia’s system of funding provincial, district and city governments is one of the most complex in the world, and has undergone substantial expansion over the last two decades. While the system allows thousands of authorities to function, it is failing in three respects: inequality of funding between regions persists, funding for some governments is unpredictable and volatile and some oil- and gas-rich regions have not sufficiently prepared for a possible future with much lower revenues. Indonesia’s planning ministry, Bappenas, should investigate these issues further focusing particularly on clarifying policy objectives, ensuring more reliable funding, supporting oil- and gas-rich regions in becoming more resilient to a long-term decline in prices and clarifying the published rules around the funding system.
Topic:
Civil Society, Government, Oil, Gas, Media, Mining, and Political Parties
Political Geography:
Indonesia and Southeast Asia

5. The Challenges of Universal Health Insurance in Developing Countries: Evidence from a Large-scale Randomized Experiment in Indonesia

Author:
Abhijit Banerjee, Amy Finkelstein, Rema Hanna, Benjamin A. Olken, Arianna Ornaghi, and Sudarno Sumarto
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
To assess ways to achieve widespread health insurance coverage with financial solvency in developing countries, we designed a randomized experiment involving almost 6,000 households in Indonesia who are subject to a nationally mandated government health insurance program. We assessed several interventions that simple theory and prior evidence suggest could increase coverage and reduce adverse selection: substantial temporary price subsidies (which had to be activated within a limited time window and lasted for only a year), assisted registration, and information. Both temporary subsidies and assisted registration increased initial enrollment. Temporary subsidies attracted lower-cost enrollees, in part by eliminating the practice observed in the no subsidy group of strategically timing coverage for a few months during health emergencies. As a result, while subsidies were in effect, they increased coverage more than eightfold, at no higher unit cost; even after the subsidies ended, coverage remained twice as high, again at no higher unit cost. However, the most intensive (and effective) intervention – assisted registration and a full one-year subsidy – resulted in only a 30 percent initial enrollment rate, underscoring the challenges to achieving widespread coverage.
Topic:
Government, Health, Health Care Policy, and Economy
Political Geography:
Indonesia and Southeast Asia

6. Indonesia’s Oil and Gas Revenues: Using Payments to Governments Data for Accountability

Author:
Alexander Malden and Fikri Zaki Muhammadi
Publication Date:
12-2019
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Under mandatory disclosure laws in the European Union, Canada and Norway, companies listed or incorporated in these countries must disclose the payments they make to government entities for their extractive activities. Under these laws, seventeen international oil and gas companies have reported over $15 billion in payments to Indonesian government entities since 2014. This report explores some of the ways this timely source of payment data can be used as an accountability tool. Civil society organizations, media outlets, government officials, parties to Indonesia’s Extractive Industries Transparency Initiative (EITI) and oversight actors can use payment data in combination with other data sources to: Verify the size and recipient of oil and gas project signature bonuses Estimate and verify the revenue that local and regional government entities should receive from an oil and gas project that operates in their region Estimate and verify the government’s share of production from a project under the new gross split production-sharing contract (PSC) model
Topic:
Government, Oil, Gas, Accountability, and Data
Political Geography:
Indonesia and Southeast Asia

7. Financial Central and Regional Relations Within the Government Enforcement in Indonesia

Author:
Muhammad Suhardi, L. Husni, and RR Cahyowati
Publication Date:
09-2019
Content Type:
Journal Article
Journal:
Journal of Liberty and International Affairs
Institution:
Institute for Research and European Studies (IRES)
Abstract:
Indonesia is a unitary state as asserted in Article 1 paragraph (1) of the Constitution of the Republic of Indonesia 1945. As a consequence of this, Indonesia dividing its territory into several regions. This study aims to analyze the form of regulation on financial relations among the central and regional governments, especially those that regulate balance funds to accelerate the equitable distribution of development. Types of normative research with legislative, conceptual, and philosophical approaches were used as the research method. In conclusion, the formulation of balancing funds between the central and regional governments prevailed so far has not yet reflected a sense of justice so that it can obstruct the occurrence of even distribution among regions.
Topic:
Government, Regulation, and Finance
Political Geography:
Indonesia and Southeast Asia

8. Beyond Access: Making Indonesia's Education System Work

Author:
Andrew Rosser
Publication Date:
02-2018
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Indonesia’s education system is low in quality and the underlying causes are political. Indonesia’s education system has been a high-volume, low-quality enterprise that has fallen well short of the country’s ambitions for an “internationally competitive” system. This outcome has reflected inadequate funding, human resource deficits, perverse incentive structures, and poor management but has most fundamentally been a matter of politics and power. The political causes of poor education performance include the continued dominance of political, bureaucratic, and corporate elites over the education system under the New Order and the role that progressive NGOs and parent, teacher, and student groups have had in education policymaking since the fall of the New Order, making reform difficult.
Topic:
Education, Government, Politics, Children, Youth, and NGOs
Political Geography:
Indonesia, Asia, Australia, and Australia/Pacific

9. The Perfect Storm: The closing space for LGBT civil society in Kyrgyzstan, Indonesia, Kenya, and Hungary

Author:
Meg Davis
Publication Date:
04-2016
Content Type:
Special Report
Institution:
Global Philanthropy Project (GPP)
Abstract:
While the late 20th century saw a blossoming of civil society organizations, the beginning of the 21st century has been a period of upheaval. In response to both the threat of terrorism and to growing populist pressure for democracy, transparency, and government accountability, states have used new laws and tactics to restrict freedom of association and freedom of expression. Lesbian, gay, bisexual, and transgender (LGBT) organizations have always faced such barriers, ranging from criminalization of same-sex sexuality, to refusal of the right to register organizations or hold public events, to the shutdown of websites.1 In recent years, some countries have also ratified new laws that explicitly prohibit groups engaged in “LGBT propaganda.” In other countries, politicians have mobilized resurgent nationalism by publicly scapegoating LGBT groups as representing “foreign values.” These overlapping trends have created a “perfect storm” for LGBT civil society organizations caught in simultaneous waves of political pressure.
Topic:
Civil Society, Government, Law, Freedom of Expression, Discrimination, LGBT+, Marginalization, and Philanthropy
Political Geography:
Kenya, Indonesia, Kyrgyzstan, Hungary, and Global Focus

10. The Power of Transparency: Information, Identification Cards and Food Subsidy Programs in Indonesia

Author:
Abhijit Banerjee, Rema Hanna, Jordan C. Kyle, Benjamin A. Olken, and Sudarno Sumarto
Publication Date:
02-2015
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Can governments improve aid programs by providing information to beneficiaries? In our model, information can change how much aid citizens receive as they bargain with local officials who implement national programs. In a large-scale field experiment, we test whether mailing cards with program information to beneficiaries increases their subsidy from a subsidized rice program. Beneficiaries received 26 percent more subsidy in card villages. Ineligible households received no less, so this represents lower leakage. The evidence suggests that this effect is driven by citizen bargaining with local officials. Experimentally adding the official price to the cards increased the subsidy by 21 percent compared to cards without price information. Additional public information increased higher-order knowledge about eligibility, leading to a 16 percent increase in subsidy compared to just distributing cards. In short, increased transparency empowered citizens to reduce leakages and improve program functioning.
Topic:
Government, Humanitarian Aid, Food, Political and institutional effectiveness, and Social Policy
Political Geography:
Indonesia and Southeast Asia